"Megaupload is challenging the U.S. Government's possession of millions of dollars in assets it seized from the company and its operators in January. The newly-filed and eye-opening motion slams the U.S. for holding the defendants liable for alleged offenses that aren't even a crime, ignoring laws designed to offer them protection, failing to provide any detail whatsoever on alleged infringements, and pushing U.S. law far beyond its borders." I'm sure Megaupload wasn't exactly a fluffy bunny organisation, but rarely have I seen a government screw up so badly, and so publicly.

The Megaupload case wasn't about legalities or guilt, it was about destroying the business. Even if after everything is said and done, Megaupload is found to have not been guilty of a criminal conspiracy and all those involved in the business are absolved--the company has still been destroyed. Which was the original goal of the MAFIAA all along.

More than that, several of the competitors to Megaupload were spooked by the illegal actions of the US government to the point where they too have more or less shuttered. As far as the MAFIAA is concerned this is a win too, because Megaupload's competition was also their competition.

For all the talk about freeloaders, pirates, etc the biggest sin Megaupload was guilty of was showing that people were indeed willing to pay a reasonable fee for access. Too bad the MAFIAA chose to cling to its rapidly deteriorating 20th century business model instead of following the lead of Megaupload and making money themselves...

The final agreement on the VHS and other recordable media was to put a pretty large tax in the US on any of those blank products. The proceeds from those taxes were to be shared by many groups. VHS didn't kill the industry because of this tax putting money in pockets from I Love Lucy to Frank Zappa.